In a real estate transaction, what is the primary purpose of the closing and settlement process?

The primary purpose of the closing and settlement process in a real estate transaction is to transfer ownership and funds. This crucial step marks the finalization of the property transfer, where the buyer officially receives the title to the property and the seller receives the agreed-upon funds. During this event, various documents are executed, including the deed, mortgage documents, and final settlement statement, which outlines all financial transactions involved in the deal.

While the gathering of documents, conducting property inspections, and resolving disputes may occur during the broader scope of a real estate transaction, they do not represent the main goal of the closing process. Closing represents the culmination of all previous steps, ensuring that both parties fulfill their obligations and that the title is conveyed legally and effectively.